Malaysia Airlines - Orient Aviation

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REGIONAL ROUND-UP Hong Kong Airlines signs MoU for 51 jets Hong Kong Airlines which began life in 2001 as CR Airways with two Bombardier CRJs, signed a Memorandum of Understanding (MoU) for 51 Airbus widebody and narrowbody aircraft in late June. The carrier currently operates five B737-800s. The ‘shopping list’ is for 30 A320s, 20 A330s and one Airbus Corporate Jet. Two years ago, the airline changed its name after Mainland carrier, Hainan Airlines, took a 45% stake in the airline and put its own management team in place. Airline chairman, Ren Wei Dong, said the A330s would be used to establish longhaul routes. Asia biggest market, forecasts Boeing In a 2007 Current Market Outlook, released in London last month, Boeing said there will be a US$2.8 trillion market for airliners in the next 20 years and the largest market will be in the Asia-Pacific. The new airliners will accommodate forecasted 5% annual passenger traffic growth and a 6.1% increase in cargo traffic. The report said the market value translates into 28,600 new commercial airplanes with the “largest market projected to be the Asia-Pacific with 36% of the $2.8 trillion”. North America will comprise 26% of delivery dollars, followed by Europe, Russia and the Commonwealth of Independent States (CIS) with 25% and Latin America, the Middle East and Africa taking up the remaining 13%, said Boeing. The largest market will be in single aisle airplanes (17,650), followed by twin aisle airliners (6,290), regional jets (3,700) and aircraft larger than 400 seats (960), according to its forecast. China could open up local skies A senior Chinese aviation regulator, Yang Guoqing, has told the China Securities Journal that all airports could be open to all operators from 2010, when the 11th five-year plan concludes. He said the reforms could make the eight largest airports in China, including Shanghai and Beijing, available to all domestic carriers. At present these airports have only been available to major government airlines, which has stymied the growth of private airlines in China. China interested in Airbus plants China Aviation Industry Corp (Avic I) president, Lin Zuoming, said his company is bidding to invest or buy all six European Airbus factories up for auction as well as to develop mid-size jets with Canadian manufacturer, Bombardier. Airbus is auctioning plants in France, Germany and England that it said would save the company US$2.68 billion. The Bombardier joint venture requires a $400 million investment from the Chinese manufacturer in Bombardier’s C Series aircraft. In turn, the Canadian manufacturer will invest $100 million in Avic I’s new regional jet, the ARJ21. LOW-COST CARRIERS Korean Air to launch LCC Following the completion of a feasibility study, Korean Air (KAL) will set up a low-cost carrier (LCC) in the next three years, the carrier’s parent company, the Hanjin Group, said in June. The new airline will fly on targeted domestic routes as well as short and mediumhaul international services, using its fleet of B737s, the president of KAL’s passenger services division, Young-Ho Kim, said. Korean Air’s decision to launch an LCC was “also a display of its will that it shall no longer remain indifferent to the invasion of LCCs from China and Southeast Asia into the Korean market,” Kim said. “The Korean flag carrier has asserted many times that dump selling and unreliable tourism packages centred around LCCs causing market disturbance and customer inconvenience must be stopped. Korean Air’s strategy is to differentiate its new LCC venture with its experience, world class maintenance skills and fleet efficiency,” he added. 6 ORIENT AVIATION JULY/AUGUST 2007 Budget carrier to fend off China All Nippon Airways (ANA) said it also may launch an LCC to fend off competition from a growing number of Chinese airlines. ANA president, Mineo Yamamoto, said in June the possibility of increased industry deregulation and the additional slots to become available at Tokyo’s Narita and Haneda airports by 2009 gave ANA the impetus to plan an LCC. “If Chinese carriers start cut-price airlines then that is going to be a threat,” he Korean Air: planning to launch a low-cost carrier told Reuters news agency in Tokyo. “We are looking at the need for a budget airline so we can compete with other Asian airlines. And if we feel it is necessary then we want to do that,” Yamamoto said. The airline could be based overseas, in a country with lower costs than Japan and would be a separate brand from ANA, he added. Separately, ANA and Korea’s Asiana Airlines have announced they will each spend US$12 million buying shares in each other’s airline as part of a new strategic alliance. The airlines, both members of the Star Alliance, will also develop co-operation in
SHORTTAKES AIRLINES>> Chongqing Airlines, a new carrier which is 60% owned by China Southern Airlines, has received approval to begin flying from the nation’s regulatory authorities with an initial fleet of three A320s. HNA Group subsidiary, Lucky Air, is launching its own subsidiary, West China Airlines, in Chongqing with three B737-300s. AIRPORTS>> Copenhagen Airport has sold its 20% equity in Hainan Island’s Meilan Airport for a reported $ 69.75 million. Singapore Changi Airport’s Terminal 3 will open next January and is projected to handle 22 million passengers a year, bringing the total forecast to use Changi Airport to 70 million a year. CODE -SHARES>> Japan Airlines and Jetstar have commenced code-sharing on the Osaka-Brisbane-Sydney route. MRO>> Ameco Beijing and Air China have completed a centralised component subcontract agreement whereby Ameco will repair component parts for Air China. SIA Engineering Co Ltd is to buy 100% of Brisbane-headquartered Aircraft Maintenance Services Australia Pty Ltd (AMSA), a line maintenance company established in 1992. SR Technics and Air India have signed an agreement to service the CFMI engines and CTCP APUs for the Air India Express fleet of B737-800s. LEASING>> AWAS and private equity group, Terra Firma, have completed the takeover of Pegasus Aviation Finance Company, bringing the combined aircraft owned by the enlarged group to 223, valued at $5.5 billion. ROUTES>> AirAsia will begin daily services to Shenzhen – a city of 12 million across the China border from Hong Kong and a gateway to southern China – from both Bangkok and Kuala Lumpur in midmonth. Cathay Pacific Airways will double its services to New York and San Francisco, operating twice daily nonstop flights from the U.S. Dragonair has increased its Hong Kong to Busan, Chongqing and Xian services to daily for the summer peak as well as doubling its services to Fuzhou in China to 14 a week. The airline will also provide several charter services from Hong Kong to five Japanese cities during July-August. United Airlines resumed its daily nonstop service between Taipei and San Francisco in June for the summer. TRAINING>> Emirates Airlines has ordered one CAE 7000 series B737- 300ER full-flight simulator (FFS) and Hainan Airlines has signed a contract for a CAE 7000 series EB145 FFS and a suite of CAE Simfinity training devices. Thales has won a $20 million contract from Sichuan Airlines to supply and support training equipment – two D- Level FSSs and one classroom-based Thales Formation Systems Trainer. the areas of sales, marketing and airport services. (See The ‘Everest Challenge’ p.10) Jetstar on expansion drive Qantas-controlled LCC, Jetstar, said it is planning a large aircraft order, possibly with Airbus, and is looking to buy minority stakes in Asian carriers as it expands across the region. Jetstar chief executive, Alan Joyce, said: “We are talking to Airbus at the moment for a long-term big order.” Joyce added that Jetstar parent, Qantas Airways, was considering investing in airlines in the Philippines, Indonesia and Thailand and that Jetstar in particular was looking at possible markets in Taiwan, South Korea and Southern Europe. In June, Jetstar increased its flights to Bali, Indonesia, to double-daily services. Oasis and Viva Macau spread their wings Low-cost carriers Oasis Airlines and Viva Macau, based in Hong Kong and Macau respectively, have expanded their networks to include North America and Australia as well as several Southeast Asian cities. Oasis, which flies daily to London Gatwick from Hong Kong, began a six times a week service to Vancouver on June 28 using three former All Nippon Airways B747-400s. At Viva Macau, the new chief executive, Con Korfiatas, said the LCC will start a three times a week service to Sydney in mid-August and is planning routes from Macau to Tokyo, Osaka, Pusan, Manila Clark, Phuket and Ho Chi Minh City. Former Viva Macau CEO, Andrew Pyne, resigned from the airline to set up an LCC, yet to be named, in Moscow. Pyne remains a shareholder and an advisor. Nok Air goes shopping Thai LCC, Nok Air, has announced it has become the world’s first “shoppers’ airline”, following the launch of its first international flight; daily services between Bangkok and Bangalore in India. Nok Air and The Mall Group, operators of the three most prestigious shopping malls in Bangkok, have done a deal which offers passengers flying the airline from Bangalore to Bangkok discounts of up to 50% if they shop at selected retail outlets in The Mall Group’s Emporium, Siam Paragon, and The Mall department stores in Bangkok. Thai AirAsia wants IPO Several senior executives of Thai AirAsia, who now hold 1% of the low-cost carrier, are planning to buy the 50% of the airline now owned by Shin Corp, one of the companies owned by former Thai prime minister, Shinawatra Thaksin. The airline’s chief executive, Tassapon Bijleveld, said if the purchase is completed, the remaining 49% of the airline would continue to be held by Malaysia’s AirAsia Bhd. He added the carrier was planning an IPO by 2010. Long-haul, tight fit AirAsiaX , the longhaul, lowcost carrier to be launched by the AirAsia Group in September, has ordered 15 A330-300s and announced the airplanes will have the largest configuration in the aircraft type’s history – 396 seats in the cabin – up to 36% larger than other A330-300 operators. JULY/AUGUST 2007 ORIENT AVIATION 7
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Page 10 and 11: MAIN STORY The ‘EVEREST CHALLENGE
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Page 16: ENVIRONMENT As airlines worry about
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Page 29 and 30: AIR TRAFFIC MANAGEMENT As dramatic
Page 31 and 32: tycoon Joseph Lau ordered a VIP ver
Page 33 and 34: By Charles Anderson wants the entir
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Page 37 and 38: SPECIAL REPORT Flagship show adds t
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Malaysia Airlines - Orient Aviation

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